Iran to Sign Oil Deal With France's Total

PARIS—Iran on Thursday will sign an agreement with French oil major Total SA allowing the company to buy hundreds of thousands of barrels of Iranian crude oil a day, ramping up the country's efforts to attract investment in its oil industry following the lifting of international sanctions.

"We will sign something with Total today," Iranian Oil Minister Bijan Zanganeh said Thursday.

The minister traveled to Paris with Iranian President Hassan Rouhani and the presence of the two men has already led to the signing of several contracts in the car, railroad and air transportation industries, worth billions of euros.

After meeting with Mr. Rouhani in Paris on Thursday afternoon, Total Chief Executive Patrick Pouyanné revealed the deal will allow his company to buy between 150,000 and 200,000 barrels a day from Iran, a spokesman said.

The French company was present for years in Iran and was one of the last to leave the country after stopping its activities gradually as sanctions against the country were stepped up. Total stopped all oil exploration and production activities in 2010.

However, the company has maintained an office in the country since then. Mr. Pouyanné has said Total was talking with Iranian officials before the lifting of Western sanctions, to pave the way for agreements following their relaxation.

Earlier this week, Italian oil service company Saipem signed one contract with National Iranian Gas Co. and another with Parsian Oil & Gas Development Co.

Write to Matthew Dalton at [e-mail] and Inti Landauro at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 08:55 ET (13:55 GMT)

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